Predicted trends for the Middle East financial services sector in 2022

Predicted trends for the Middle East financial services sector in 2022

Global management consultancy Oliver Wyman shares its predictions on the trends that will shape the financial sector in the Middle East during 2022. , Partner – Head of IMEA Financial Services, and KSA Market Leader at Oliver Wyman, said the region is undergoing a radical transformation of its financial sector, and 2022 should witness major developments. The trends expected this year, according to Oliver Wyman, include: We see massive interest in Payments across the spectrum of banking incumbents, Fintech Disruptors and Central Banks. This is underpinned by a conjunction of factors, the first of which is that Payments have superior economics and Return on Capital Employed (ROCE). Secondly, Payments are a gateway to full banking relationships which Disruptors want to use as the anchor to attack Incumbents, and Incumbents want to deflect. Saudi Arabia’s STC Pay and UrPay (by Al Rajhi Bank) are good examples of this competition playing out. Thirdly, Payments are a key pillar of enhanced government services and regulatory supervision. For instance, the UAE and Saudi Arabia are partnering on Crypto-Currency and Distributed Ledger via project Aber, in a move which could transform interbank transactions and reserve management. We also foresee growing adoption of cryptocurrencies and a